The Afternoon Update with Lynlee Foo

China’s currency, the yuan, is heading towards its lowest level against the dollar since the 2008 financial crisis.  Analysts expect its strength to be further tested in the coming weeks as the country’s rebound from the pandemic hasn’t gone according to plan. The currency has dropped more than 5 percent against the dollar this year, touching 7.29 to the greenback and just shy of the high of 7.32 hit last year, which marked the currency’s weakest level in more than 15 years.  The slide has pushed the central bank, the People’s Bank of China, to step up its defence of the currency in recent weeks. So what’s next for the yuan? Emaad Akhtar speaks to Khoon Goh, Head of Research, ANZ to find out more.

The US bond market was hit by a fresh round of selling pressure Friday after Federal Reserve Chair Jerome Powell said the central bank remains prepared to push interest rates higher and keep them elevated if needed to keep reining in inflation. What’s the correlation between the two? Asian bonds recorded net foreign inflows for a fifth straight month in July. Singapore government bonds are being viewed attractively as a haven from the rising economic issues in China and a hawkish Federal Reserve which is prepared to keep raising interest rates. What is making Singapore governments this attractive? On Money in the Market, Emaad Akhtar speaks to Selena Ling, Chief Economist at OCBC Bank to find out more. Highlights:  02:34 - How does a bond market sell-off result in higher Treasury yields? 03:38 - To what extent is it true that competition for yields is moving flows from the stock market to bonds? 04:55 - Will the trend of positive net foreign inflows for Asian bonds continue? 06:01 - What makes Singapore government bonds so attractive in the current climate? 09:21 - Is this a good time to be investing in bonds?

This year’s Jackson Hole Symposium, which brings together the leading central banking heads of the world, was held in the US state of Wyoming.  On Friday, Federal Reserve Chair Jerome Powell called for more vigilance in the fight against inflation, warning that additional interest rate increases could be yet to come. While acknowledging that progress has been made and saying the Fed will be careful in where it goes from here, the central bank leader said inflation is still above where policymakers feel comfortable.  He noted that the Fed will remain flexible as it contemplates further moves, but gave little indication that it’s ready to start easing anytime soon. So what does this mean for markets and in the eyes of investors as we move into the final quarter of 2023? On Money in the Market, Emaad Akhtar speaks to Tassia Sipahutar, Asia Cross-Asset Reporter, Bloomberg News to find out more. 

Worries about China’s slowing economy and its widening interest-rate differential with the US have sent its currency, the yuan, tumbling some 5% this year, though it has fared better against the currencies of other trading partners. The People’s Bank of China has introduced a variety of measures to slow the depreciation, including stronger-than-expected reference rates and urging state banks to buy the managed currency. Meanwhile, the greenback rallied toward a three-month high today as traders mulled the possibility of higher-for-longer interest rates ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later today. Emaad Akhtar speaks to Philip Wee, Senior FX Strategist, DBS to find out more about the latest movements in currency markets.

On The Afternoon Update, Emaad Akhtar is joined by Geoff Howie, Market Strategist at the SGX, for a market wrap of the week. They discuss how the STI performed in the past week; the biggest movers on the STI; the reasons behind Singtel's sharp decline in net profits for the first quarter ended June 30 of the 2024 FY; Singapore's most recent core and headline inflation numbers; the objective of the Singapore government's plans to raise 50-year sovereign green bonds; and what the Fed is signalling ahead of the annual Jackson Hole Symposium later today.

Oil has posted a modest decline in recent days amid signs that supplies are rebounding while concerns linger about demand in China, the world’s biggest crude importer. Observed exports from Iran have surged to 2.2 million barrels a day this month, and Turkey and Iraq have held a sudden flurry of talks as they seek to restart a major oil pipeline. Efforts by OPEC+ linchpins Saudi Arabia and Russia to curb production have tightened the market.  However, the demand outlook in China is clouded, and there are signs US interest rates will need to stay higher for longer to rein in inflation. So will oil prices rally again? On Money in the Market, Emaad Akhtar speaks to Kang Wu, Head of Global Demand and Asia Analytics CEO at S&P Global Commodity Insights to find out more.

You may have heard, COP28 is taking place in Dubai this year. But what is COP, and why does it matter? Here’s an explainer and what you need to know! In this episode of Eco Money you'll hear from industry players on what they hope from this year's COP. Comments from: Anita Neville, Vice President of Corporate Communications and Sustainability Relations, Golden Agri-Resources Dale Hardcastle, Global Head of Carbon Markets and Director of Global Sustainability Innovation Center, Bain & Company Kavita Gandhi, Executive Director, Sustainable Energy Association Singapore

Asian equities traded mixed today as Wall Street’s risk-on mood faded a day after the rally in big tech.  Mainland Chinese stocks returned under pressure despite fresh signs of an earnings recovery among the country’s tech giants. The selling in mainland China came even as internet giant Baidu released financial results that showed its revenue rose the most in more than a year.  The company reported a larger-than-projected jump in sales for the June quarter as its net income rose 43%. On Money in the Market, Emaad Akhtar speaks to Danish Lim, Market Analyst, Philip Nova, to make sense of these market movements.

August hasn’t been a great month for technology stocks. Before the start of this week, the Big Tech companies, notably Apple, Nvidia, Meta and Microsoft fell at least 10 percent from their highs in July. Tesla, meanwhile, declined by more than 25 percent in that period.  Yesterday, however, Nvidia's shares soared as more analysts raised their price targets on the stock, a potential sign of growing optimism about the chipmaker’s highly anticipated earnings results later this week. The other major players too, reported gains overnight. So is this merely a brief respite from the stormy weather for tech stocks, or the beginning of a revival in its fortunes? On Money in the Market, Emaad Akhtar speaks to Maximilian Koeswoyo, Research Analyst, Philip Securities Research,to find out more. 

A three-way contest for the presidency is officially under way among former GIC investment chief Ng Kok Song, 75, former senior minister Tharman Shanmugaratnam, 66, and former NTUC Income chief Tan Kin Lian, 75. The three presidential hopefuls all successfully filed their nomination papers, before delivering their nomination speeches.